NMP National Mortgage Professional August 2022

AUGUST 2022

Vol. 14, Issue 8 $20.00

MIKE, MIKE, MIKE, MIKE

Criss-crossing the U.S., Mike Fawaz is everywhere preaching on Rocket Pro TPO

WHAT NOW? THE LO SURVIVAL GUIDE

WHEN HIGH LTV MAKES SENSE HOW TO HIT A MARKETING HOME RUN

FRIENDS, WITH BENEFITS

This year, your network is your lifeline

A PUBL ICAT ION OF A ME RICA N BUS INE SS MEDI A

The Leader in Non-QM

Visit AngelOakMS.com | 855.631.9943 ©Angel Oak Mortgage Solutions LLC NMLS #1160240, Corporate office, 980 Hammond Drive, Suite 850, Atlanta, GA, 30328. This communication is sent only by Angel Oak Mortgage Solutions LLC and is not intended to imply that any of our loan products will be offered by or in conjunction with HUD, FHA, VA, the U.S. government or any federal, state or local governmental body. This is a business-tobusiness communication and is intended for licensed mortgage professionals only and is not intended to be distributed to the consumer or the general public. Each application is reviewed independently for approval and not all applicants will qualify for the program. Angel Oak Mortgage Solutions LLC is an Equal Opportunity Lender and does not discriminate against individuals on the basis of race, gender, color, religion, national origin, age, disability, other classifications protected under Fair Housing Act of 1968. MS_A723_1221

AUGUST 2022

Vol. 14, Issue 8 $20.00

MIKE, MIKE, MIKE, MIKE

Criss-crossing the U.S., Mike Fawaz is everywhere preaching on Rocket Pro TPO

WHAT NOW? THE LO SURVIVAL GUIDE

WHEN HIGH LTV MAKES SENSE HOW TO HIT A MARKETING HOME RUN

FRIENDS, WITH BENEFITS

This year, your network is your lifeline

A PUBL ICAT ION OF A ME RICA N BUS INE SS MEDI A

AUGUST 2022

Volume 14 Issue 8

CONTENTS

nationalmortgageprofessional.com

COVER STORY PAGE 42

22 Non-QM Lender Resource Guide

From Hard Beginnings Comes Success

28 Private Lender Resource Guide

Mike Fawaz emerges from the ashes of a war-torn childhood to become a beloved figure.

30 Wholesale Lender Guide 34 DataBank 48 Non-QM Lender Directory 52 Wholesale Lender Directory

4 Kinder, gentler …

A bit of humility, patience and understanding go a long way to being a mortgage professional.

13 People on the Move See who the movers and shakers are in the mortgage industry.

6 Be A Better Trainer Steps to take to punch up your coaching abilities.

14 Build-A-Broker: Ready For The Recession?

Practical advice on how to be prepared when it strikes.

8 Tap Into LinkedIn Getting a new job depends heavily on working your networks.

16 Build-A-Broker: You Can Still Sell ReFi’s Just be prepared to spend more time on education.

10 Play Ball! Earn Money!

Use sports for more efficient marketing efforts.

18 Your First Million Dollars: Blockbuster Advice “Top Gun: Maverick” is loaded with business and life lessons.

20 Benchmarks & Best Practices: Learn About Building Wealth Match your borrowers with their best options.

Originator Tech Directory Private Lender Directory 54 Facebook Thoughts: My Daughter The Waterboarder

36 The Survival Primer How to stay afloat for the remainder of 2022.

Refillet Wa

nationalmortgageprofessional.com

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | AUGUST 2022 |

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AUGUST 2022

STAFF

Vincent M. Valvo CEO, PUBLISHER, EDITOR-IN-CHIEF Beverly Bolnick ASSOCIATE PUBLISHER

Volume 14, Issue 8

LETTER FROM THE PUBLISHER

Try A Little Tenderness

G

Christine Stuart EDITORIAL DIRECTOR David Krechevsky EDITOR Keith Griffin SENIOR EDITOR Mike Savino HEAD OF MULTIMEDIA

o to just about any Facebook group for loan originators, and the haters and trolls are playing their usual games. A new originator asks for help, and the answer (from some) is to get out of the business. It’s like we’re all in a zero-sum game: I can’t win unless you lose.

But this is an industry that’s being roiled by massive change. And the tens of thousands of layoffs that have occurred this year aren’t benign.

People were enticed to enter this field on the promise of booming business and good rewards.

They weren’t told that they were signing up for a temporary job. But they’re living with lost positions or a radically changed sales environment, and many don’t know where to turn, what to do, or how to pivot.

It’s hard to see how everyone getting the boot could land back in this industry — the capacity just isn’t there right now. But that doesn’t mean that cruelty or obnoxious diffidence have any place here. The mortgage industry is cyclical, and those who are down will rise eventually. And those who are in high places may find themselves toppled. A bit of humility, patience and understanding go a long way to being a mortgage professional, and none of those costs a dime.

Katie Jensen, Steven Goode, Douglas Page, Sarah Wolak STAFF WRITERS

MAN UP

Melissa Pianin MARKETING & EVENTS ASSOCIATE

So let’s turn to Mike Fawaz, the subject of our cover feature this month. Fawaz — as he’s commonly called, even by friends — knows what real hardship is. An immigrant from Lebanon and Liberia, both riven by the claws of warmongers, he made his way to the U.S. as a teenager, and he’s worked to build a life, a career and a community ever since. His story is acute and inspiring, and anyone with a chip on their shoulder that they’re a “self made success” should look at Fawaz’s history. They’ll be left wondering whether they could have succeeded after all.

Mike Fawaz is a man of legendary work ethic, but more importantly, he’s a man of kindness and empathy. His colleagues laud him for it. His clients revere it.

For those who want help making their way in this industry, don’t let the naysayers discourage you. As some moderators of those Facebook groups have said, we are supposed to be finding ways to help everyone succeed. And if that still doesn’t help you, reach out to Fawaz (he’s on Facebook and LinkedIn).

Because where some folks say they are there to help brokers, here’s someone who can prove it.

V INCEN T M. VALVO Publisher, Editor-in-Chief

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| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | AUGUST 2022

Rob Chrisman, Dave Hershman, Erica LaCentra, Nick Roberson, Lew Sichelman, Mary Kay Scully CONTRIBUTING WRITERS Alison Valvo DIRECTOR OF STRATEGIC GROWTH Meghan Hogan DESIGN MANAGER Christopher Wallace, Stacy Murray GRAPHIC DESIGN MANAGERS Navindra Persaud DIRECTOR OF EVENTS William Valvo UX DESIGN DIRECTOR Andrew Berman HEAD OF CUSTOMER OUTREACH AND ENGAGEMENT Tigi Kuttamperoor, Matthew Mullins MULTIMEDIA SPECIALISTS

Kristie Woods-Lindig ONLINE ENGAGEMENT SPECIALIST Michael Castro MARKETING MANAGER Joel Berman FOUNDING PUBLISHER Submit your news to editorial@ambizmedia.com If you would like additional copies of National Mortgage Professional Call (860) 719-1991 or email info@ambizmedia.com

www.ambizmedia.com © 2022 American Business Media LLC. All rights reserved. National Mortgage Professional magazine is a trademark of American Business Media LLC. No part of this publication may be reproduced in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without written permission from the publisher. Advertising, editorial and production inquiries should be directed to: American Business Media LLC 88 Hopmeadow St. Simsbury, CT 06089 Phone: (860) 719-1991 info@ambizmedia.com

DAVE HERSHMAN

RECRUITING, TRAINING, AND MENTORING CORNER

Influence Behavior For Better Results Think of ways you might enhance your training and coaching efforts

BY DAVE HERSHMAN, CONTRIBUTING WRITER, NATIONAL MORTGAGE PROFESSIONAL

T

his is the third of a three-part series.

In past issues, we covered the difficulties presented finding the time and techniques required to training and coach loan officers. We also added coaching techniques such as role playing and scripts. Now we will add additional tools that you might use in order to facilitate your efforts in this regard.

CREATE BUDDIES As a manager, you cannot be everywhere at once. At the same time, most sales personnel will tend to become stale in their approach if they go out and attempt to accomplish the same task over and over again.

We can assist the implementation of sales monitoring and effectiveness by teaming a senior originator with a rookie (or a few rookies) and making the senior originator a team leader.

Going further, a buddy system would pair all our sales personnel so that they present joint goals, effect joint calls and work on larger projects together. Perhaps they might also spot review each other’s loan applications.

Nothing instills enthusiasm greater than joint energy. A monitoring visit by the boss does not instill energy nor does it produce genuine behavior.

Have the buddies give joint reports at the sales meetings.

Originators can also buddy up and call with vendors who are also calling upon their targets. For example, the marketing arm of a title company also calls on real estate professionals.

Why not accomplish this task together? Buddies may also cover for each other when vacations and other absences occur.

One can always accomplish more as part as a team rather than as an individual. And most of all — this technique helps instill a team spirit!

INCENTIVE PROGRAMS Most companies have reward levels for top producers (perhaps a trip or bonus). If sales contests are held locally, the winners are likely to be the same top producers. Others are

not motivated because they do not perceive a chance to win.

Our goal is to influence behavior and our compensation plans already reward higher production levels. Why not gear incentives to actual behaviors likely to produce a particular result?

For example, a contest to set up and deliver a certain amount of Realtor sales meeting presentations. There will be an opportunity to combine this contest with training concentrating upon the types of presentations that can be held, speaking skills, and identification of achievement of objectives.

Another option is to offer incentive programs that reward the improvement of production levels or market share, rather than total

Nothing instills enthusiasm greater than joint energy. A monitoring visit by the boss does not instill energy nor does it produce genuine behavior.

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| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | AUGUST 2022

production levels. In the case of improvement, medium and lowerlevel producers have a better chance of winning than those who have reached top producer level.

Some examples of incentives rewards that are beyond a trip or bonus: • Send the winner to a special event or training program • Give the winner a private office for the quarter • Assign a certain amount of marketing dollars or a marketing assistant to the winner • A training tape or on-line training program • First choice of leads coming in for a certain time-period Note that many of these are geared towards helping the salesperson leverage their “winnings” for even more business. A bonus or trip is a great incentive — but if you can multiply the effect, there is even a greater result from the contest.

MENTOR PROGRAM Having a mentor program serves more than one purpose. Among its advantages: • It is a vehicle that will help the manager with training responsibilities.

• It can provide extra monetary compensation for a deserving employee.

• It can provide management training for those who are interested in advancing.

Most novices complain that mortgage companies have no training program or if the company does have classroom training, there is no follow-up afterwards. The mentor program is a way of integrating a field-training program.

INSIDE LEAD FOLLOW Those who manage “inside” sales personnel have specific issues regarding coaching. The loan officers are typically present in the office (or are remote) and are following up on set leads. Therefore,

training requirements are typically going to focus upon overcoming objections, needs assessment and closing the leads. There may or may not be an additional objective to leverage the lead for additional referrals which basically increases the sphere of the sales rep and company.

Taken as a whole, this series should certainly get you thinking as to ways you might enhance your training and coaching efforts. In today’s challenging market, your originators need as much help as possible. n

Dave Hershman , senior vice-president of sales for Weichert Financial Services, is a leading author in this industry with seven books published as well as the founder of the OriginationPro Marketing System and the OriginationPro Mortgage School — the online choice for mortgage learning and marketing content. His site is www.

OriginationPro.com and he can be reached at dave@hershmangroup.com.

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ERICA LACENTRA

RECRUITING, TRAINING, AND MENTORING CORNER

The Power Of LinkedIn And Tapping Into Your Network

It’s not what you know, but who you know in this market

BY ERICA LACENTRA | CONTRIBUTING WRITER, NATIONAL MORTGAGE PROFESSIONAL

A

s the mortgage industry is experiencing a massive surge of layoffs due to rising interest rates and reduced mortgage activity, industry professionals may be finding themselves having to unexpectedly dust off their resumes and begin the search for new job opportunities. While an unfortunate and frustrating reality for so many, one of the first things professionals on the hunt for a new job are probably thinking is where the heck do I start? Before exhausting online job boards and putting hours into applications, job seekers should start closer to home. Believe it or not, the best chance of finding your next job is probably hiding within your own professional network.

NETWORKING FOR YOUR NEXT OPPORTUNITY You may not want to believe the phrase, “It’s not what you know, but who you know” but it really has a lot of truth to it and there are some serious stats to prove it. According to Hubspot, “85% of jobs are filled through networking” and according to CNBC, “70% of jobs are never published publicly.”

While these stats may be slightly infuriating because it means you may never even see a job opportunity that could be perfect for you, it also means that on the flip slide, by utilizing your own professional network, you may have access to “exclusive” opportunities and land the perfect

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job that isn’t available to a wider audience. This means less competition from other candidates and ultimately being able to find a role that could be the right fit for your skill set.

So, with all this untapped potential lurking in your own network, what is the best way to reach those key contacts? Of course you want to reach out to close professional contacts, but for those individuals that are within

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your circle, but you are not as closely connected with, that’s where LinkedIn can be a gold mine of opportunity.

LEVERAGING THE POWER OF LINKEDIN LinkedIn is the perfect place to engage with other professionals in your industry or in an industry that you are ultimately looking to end up in that you may not know as well as individuals within your close network. As a first step, if you aren’t already, look through and connect with individuals within your close professional network and then start seeing who you may know through those individuals at a second or even third level. You never know who you can potentially connect with and what job opportunities that can offer.

However, make sure the connections you are making are meaningful and still have a purpose rather than just trying to pad your numbers on LinkedIn. As you connect with individuals at a second or third level, make sure you are sending a personal note with your connection request as to why you want to connect.

You want to add value to the connection rather than just be another connection request they accept and forget about.

For example, if you are looking for job opportunities within a specific company and are trying to connect with

an individual at that company, first make sure you are identifying the right point of contact. If your background is in marketing, say as a marketing associate, connect with fellow marketing associates within the company, pay a compliment to the work they are doing

whether you are currently job seeking or not, you are missing out on the opportunity to expand your professional network beyond the current sphere you have and you are missing out on potential professional growth.

For the secondary category, whether

Make sure the connections you are making are meaningful and still have a purpose rather than just trying to pad your numbers on LinkedIn. on recent ad campaigns and ask about what it’s like working there. Doing so can help you decide if its worth taking any sort of next steps and approaching higher tier management for employment opportunities.

If you want to take next steps to connect with someone at a management or executive level, you then have employee insight that you can utilize during the interview process, can speak to as you present your own skill set, and easily define why you would be a good fit for a role within the company.

It becomes very easy to sell yourself as an asset when you know exactly what deficiencies are present.

Another way you can utilize LinkedIn and effectively find a new job opportunity is through groups.

Now when talking about groups, there are two different types of groups on LinkedIn that can be extremely valuable. There are groups that you can join where you share similar interests, job roles, industrys, etc. and there are groups you can create based on the connections you have within LinkedIn. Both types of groups are important from a networking perspective and can be useful if you are job seeking.

In the first category, when joining groups that relate to similar interests, job roles, are industry specific, etc., this is rather self-explanatory. Groups in LinkedIn allow you to connect with like-minded individuals that may fall outside of your normal professional circle. If you are not taking the time to look and join groups on LinkedIn,

you have a large or small amount of connections on LinkedIn, you do want to be able to create groups within those connections to be able to target the content you share to those individuals.

By creating groups within your connections, you can easily pull certain groups and share specific content.

For example, if you are an account executive looking for job opportunities in the private lending industry, you can share an update to connections within the private lending industry if you have placed them within a group, making it much easier to hit your mark.

DON’T UNDERESTIMATE YOUR CONNECTIONS As we unfortunately continue to see more companies layoff employees, we do see what LinkedIn and personal networks can accomplish. Employees from companies like Better.com, First Guarantee Mortgages and Sprout Mortgage put messaging out on to LinkedIn to try to seek jobs after unexpected layoffs hit and their networks answered the call. Within hours, posts on LinkedIn were filled with replies from recruiters and companies within the mortgage industry saying to send resumes and linking to open positions. It may be rocky times but never forget, it’s truly amazing what the power of connections can do. n

Erica LaCentra is chief marketing officer for RCN Capital.

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LEW SICHELMAN

RECRUITING, TRAINING, AND MENTORING CORNER

Connecting To Your Customers Sports, at all levels, can be an efficient means for marketing

BY LEW SICHELMAN, CONTRIBUTING WRITER, NATIONAL MORTGAGE PROFESSIONAL

Y

ears ago, John Wayne had a side job as spokesman for Great Western Bank, at the time one of the country’s largest home loan lenders. When “Duke” passed in 1979, the gig was taken over by character actor Dennis Weaver, who played, among other roles, Chester, Marshall Matt Dillon’s trusted sidekick on Gunsmoke.

Both actors are gone now, as is the once big California savings bank. But the idea of using actors to promote companies, particularly in real estate, still flows. For a while recently, for example, Elizabeth Banks was the face of Realtor.com. (Her first commercial for the search engine was directed by Fred Savage.)

And who can forget the long list of actors representing the reverse mortgage business? Right now, the front man is Emmy and Golden Globe award-winning actor Tom Selleck.

But before him came actor-turned Senator Fred Thompson, the “Fonz” Henry Winkler, Robert Wagner and Jerry Orbach.

Choosing the right spokesperson is all about finding someone people can relate to. The celeb doesn’t necessarily need to be famous, but he or she must

be recognizable.

Take Peter Koch, who advocates for Homelight, a buyer-agent matching service.

You think you know him — he’s a former football player and fitness guru who has played in numerous movies and TV shows — but you’re not sure from where.

There are reasons companies pay to have someone like Selleck and Wayne endorse them. One is that it gives them instant credibility, either to the product or to the brand. Another is that it gives them instant publicity.

And in the long run, according to Forbes, “it will encourage more and more customers to find out more about the business their favorite celebrity happens to be supporting.”

MAKE THE RIGHT CHOICE According to Social Media Week, an endorsement by a famous actor or sports star can increase sales by about 4%. But companies must have the right personality, because choosing the wrong one can backfire. And sometimes, the right one now can become the wrong one down the road.

Once called one of the most believable people in American, for instance comedian Bill Cosby hawked Jell-O, Coke and numerous other products until his legal woes with sexual assault. O.J. Simpson shilled for Hertz before he fell from grace, as did Lance Armstrong, who pitched for Subaru. Or golfers who have split with the PGA to join the Saudi-sponsored LIV Golf.

A number of sponsors have dropped their backing of said golfers, including

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YOUR

LOGO

Rocket Mortgage, which shed Bryson deChambeau after he elected to join the rival tour. At the same time, RBC, Canada’s largest bank, has cut its ties with Dustin Johnson and Graeme McDowell.

Rocket, now the nation’s largest lender, is often credited with being the first in the field to recognize the value of hooking up with a sports teams. In 2019, the company created the first-ever PGA tour event in its Detroit hometown. And now it is so entwined with sports marketing that the name is practically ubiquitous when it comes to teams and their venues.

Currently, Rocket is an official partner of the PGA as well as host of the Motor City event. It also has deals with the World Pro Ski Tour and four NFL teams, including its hometown Detroit Lions. Rocket’s founder Dan Gilbert also owns the Cleveland Cavaliers in the NBA plus other sports franchises. And his mortgage outfit has deals with 27 college football and basketball programs, including — you guessed it — Michigan State.

Its connection is undoubtedly at least part of the reason the lender is the nation’s marketing leader, sitting for two consecutive years atop USA Today’s Ad Meter. But other big-name lenders also link their names with sports teams, too. Ruoff Mortgage, which has

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | AUGUST 2022

67 branches and originates in 45 states, joined NASCAR last year in a multi-year partnership. And Guaranteed Rate is now the official sponsor of the NHL as well as a backer of professional rugby teams and bass fishing.

THINK LOCAL Smaller, local companies often get in on the celebrity branding act by using locals. And sometimes the outfit’s owner makes himself into a celeb.

Who among those of us who have ever traveled to Southwest Florida can forget the Fort Myers, Fla., car dealer who was known for loudly uttering the word “HUGE” when he was on camera hawking … well, the make of the auto is long forgotten, but not him.

Other firms sometimes support local sports teams. For the same reason large, national outfits pay big money for the naming rights to a professional sports team’s stadium — think loanDepot and the Miami Marlins, among many others — they might even put their names on a minor league field or perhaps just a fence surrounding a sandlot.

In Pepperell, Mass., for example, the local Mortgage Network office signed on for the second consecutive year this summer to sponsor the town’s youth baseball and softball programs. It’s an affordable investment that lets people know the company supports the town and its kids. And when the need for a mortgage arises, the hope is that Mortgage Network will be top-of-mind.

Actually, sports have become a HUGE — no pun intended — venue for the housing business, especially mortgage companies. And for the same reasons: A connection to a team brings instant recognition and credibility. We support them, the thinking goes, so their fans will support us.

Of course, most entities in mortgage finance don’t have the — echm — HUGE bucks to spend that Rocket or the others mentioned here. But there are numerous opportunities at sports’ lower levels. The Danvers, Mass.-based Mortgage Network sponsored the 2021 National Championship USA Track and Field Half-Marathon and backed this year’s NCAA Hockey East Men’s Championship, which featured 11

teams. Now, it is sponsoring a regional golf tourney in Hilton Head, S.C. Sports marketing “is not something we’ve historically done,” Executive Vice President Brian Koss told me. “We don’t see ourselves doing a lot more of it … With mortgage rates so high, we try to be more surgical, whereas sports is more general.”

Still, in the case of the hockey playoff, “many of our people and the people who work with us” are big college hockey fans, “so we decided to do a one-time thing for them,” Koss says. And in Hilton Head, the company is a top lender, so the sponsorship made sense.

admits it’s “hard to measure” whether or not the signage has really paid off.

“It’s not that type of market,” he says.

“But people have commented on it.”

Sometimes, sponsors aren’t looking to get any business out of their outlay.

But that’s not always the point. Royal Hartwig of Royal Family Real Estate in

A connection to a team brings instant recognition and credibility. We support them, the thinking goes, so their fans will support us.

SMALL INVESTMENT Typically, though, the Mortgage Network is not a brand-based, if you build it, they will come type of marketer. Rather, it provides marketing dollars to local offices based on their volumes. Which is how Thomas Popson, the Pepperell branch manager, came to have the money to put the company name above the concession stand at the local ballfield. The cost was a “relatively inexpensive” $750, he says.

Actually, sponsorship wasn’t even Popson’s idea. “They approached me,” says the senior loan officer, who relies mostly on social media for his marketing. And since it “complemented other things I’m doing,” he decided to take the plunge. Now, he’s in his second season of sponsorship. “It says I’m here and I’m local,” the 30-year mortgage lending veteran told me.

He could have put the Mortgage Network mantel on the outfield wall, but he chose the hot dog and soda stand instead. For several reasons: The outfield wall was farther away, therefore not as noticeable; his was the only name on the stand, so he’s not competing with anyone else, and people wait in line for food and drink, so they almost have to see his name.

Popson, who has no children and has never attended a game at the park,

Schaumburg, Ill., outside of Chicago once sponsored his own kids’ teams to the tune of $200 to $400, depending on the sport. His company’s name was mentioned a few times but it was not on any uniforms or other apparel.

“I didn’t do it for the money,” Hartwig told me. “I did it so my kids could see that my company was involved in their team, and I did it for my client — a very involved dad — because he asked me to.”

PEOPLE WILL TALK If you do decide to out your name on a uniform or an outfield fence, make sure you proofread first. The old adage “measure twice, cut once” also holds true for advertising: To wit, the experience of Washington, D.C., area title attorney Harvey Jacobs, who, in the early 2000s, talked his now former company, AmeriTitle, into sponsoring a little league baseball team of 12-yearolds in Rockville. Md. The company paid for “quite nice” uniforms with its name splashed across the back.

Opening Day was attended by several dignitaries, including the local congresswoman and the mayor. But no sooner had the kids taken the field, several people started asking Jacobs for a quote. One wanted to redo his kitchen; another, a bathroom. That’s when the title guy took harder look at the uniforms, whereupon he discovered CONTINUED ON PAGE 12

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RECRUITING, TRAINING, AND MENTORING CORNER

CONNECTING TO CUSTOMERS CONTINUED FROM PAGE 11

the second “t” in word title had gone MIA. Thus, the sponsor appeared to be “AmeriTile.” not AmeriTitle.

Jacobs has never sponsored another local team since that error, but not because of the misprint. While he’s not sure the $600 or so he spent on the uniforms generated any direct business, at least people who knew he was an attorney found out in which field of law he practiced. “It didn’t launch my career,” he told me, “but people were talking about us, so at least we got something out of it.”

For a step above youth sports but below “The Show,” think the minor leagues. From time to time, local realty companies, mortgage firms and even title outfits have advertised with the Bowie (Md.) Baysox, the Double A minor league affiliate of the Baltimore Orioles.

Though no housing-related outfits currently advertise, the team offers a

12

number of marketing choices, among them, numerous signage opportunities.

Besides the outfield walls, advertisers can put their names on the marquee on the highway outside the stadium in the state’s fifth largest city. Roughly 100,000 people pass that sign daily.

REACH FAMILIES Other possibilities include putting your name on speed pitch sign and the sign above the fan assistance center. “Where there’s a wall, there’s a way,” says the team’s director of sponsorships, Matt McLaughlin.

The cost for a full season outfield wall billboard is $10,000; for the smaller speed pitch signs, one down each foul line, it’s $7,000. But companies also can sponsor events or stadium spaces like the small kid’s amusement park, promote themselves in the full color, game-day programs and put

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | AUGUST 2022

their names on pocket and magnetic schedules. There’s between inning and half-inning sponsorships, too.

Of course, the minor leagues don’t pull like the majors, at least not in the millions. But they draw more than youth sports. And they are far more affordable for young, growing families and fans, perhaps some of which are looking for a new home or a new mortgage. During a single season, McLaughlin says his team draws 250,000 visitors – and more, if non-baseball events held at the stadium are included. n

Lew Sichelman is a contributing writer to National Mortgage Professional magazine. He has been covering the housing and mortgage sectors for 52 years.

His syndicated column appears in major newspapers throughout the country. He also has been real estate editor at two major Washington, D.C., dailies and spent 30 years on the staff of National Mortgage News, formerly National Thrift News.

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Is A Recession Coming?

How to prepare for one just in case

BY RIEVA LESONSKY, CONTRIBUTOR, NATIONAL MORTGAGE PROFESSIONAL

S

ome people predict a recession is coming, while others dismiss the notion since the nation is essentially at full employment. But many small business owners are worried a recession is looming. According to the latest Small Business Recovery Report, issued recently by Kabbage from American Express, 83% of small business owners are concerned a recession is coming soon. But entrepreneurs tend to be optimistic, and in that vein, 80% are confident they can withstand it.

Interestingly, the business owners are so confident they can withstand a recession because they survived the COVID-19 pandemic. They say the pandemic “helped them find a greater sense of resilience and preparedness to be successful in the future, despite economic turbulence.”

Due to inflationary pressures, many of the businesses surveyed have already raised their prices, so they’re in a stronger financial position in case a recession comes, but many are still struggling with supply chain disruptions.

CASH FLOW IS KING As I was doing the research for this blog, I came across an interview I did with my pal Steve Strauss about surviving a recession — in 2009!

And what I said then is still relevant today. While cash flow is always king,

it becomes more paramount during recessions because customers and clients often pay you later than usual.

Net 30 becomes net 60 in a hurry.

It’s critical for you to keep your cash flowing. Start by examining your accounts receivable and payable right now. What’s your monthly cash flow

today? Are there invoices that are past due? If so, call those customers and try to collect now.

Due to inflation, it’s likely you’re spending more than you typically do.

Look for areas where you can cut back now before you’re forced to. One area that business owners often overlook

PEOPLE ON THE MOVE //

> Paul

Howarth has joined Deephaven Mortgage as regional vice president of wholesale sales

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> Guaranteed

Rate has named Arun Tripathi executive vice president and head of new secured lending products.

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | AUGUST 2022

> Planet

Home Lending has hired Kathryn Edelen as regional vice president, sales.

> Mortgage

Network Inc. has hired Jayne Furlong to manage its new branch office in Warwick, R.I.

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is subscriptions and dues. Are you paying for publications or newsletters you rarely read? Are you a dues-paying member of organizations that you never interact with? Are you paying for technology apps you rarely use?

Keeping your overhead spending low during a recession will make a significant impact. Are you still operating remotely? This is a smart way to keep costs low. Spend your money wisely. Use credit cards that offer cash back or other relevant rewards.

But maintaining cash flow isn’t just about monitoring money in and money out. It’s also important to spend time nurturing your current business relationships. You want to cement them now, so you would be the last to go if they’re forced to cut back during a recession.

Now is not the time to cut back on prospecting for new clients and customers. Instead, think of ways you can immediately make your business top-of-mind for them. Perhaps you can offer extra training, support services, or discounts for buying in bulk or making early payments.

KEEP INVESTING IN MARKETING When money is tight, many businesses reflexively reduce their marketing spending. Don’t do this. The businesses surveyed in the Small Business Recovery Report don’t intend to — 45% of companies say they plan to implement new competitive strategies so they can stand apart from other companies. The businesses surveyed say branding is their “primary differentiator,” so it’s a good time to make sure your branding looks current and that you use it consistently in-store/office/facility, online, and in

> Waterstone Mortgage has named Matt Fenster branch manager of a new Rhode Island office.

your marketing materials.

I discovered another interview I did with Marketplace back in 2008, where I advised small business owners they need to understand the power of social networking and online marketing. This advice still holds true today. The Small Business Recovery Report shows that 44% of businesses now market through social media and digital channels.

And the new Q2 2022 Consumer Trends Report from Jungle Scout, an all-in-one platform for e-commerce businesses, reveals the influence social media and advertising has on consumer purchases: • 35% have purchased a product after watching a social media brand’s live stream • 42% say being “followed” around the internet by ads is a helpful reminder, while 32% say they are “creeped out” by the tactic [retargeting] • YouTube is the most trusted social media platform for finding and purchasing products, followed by Facebook and Instagram

and cyclical working-capital needs. It features four lines,” from the Small Business Administration (SBA).

A recession guide from FreshBooks advises small businesses to contact their lenders now if they are concerned

When money is tight, many businesses reflexively reduce their marketing spending. Don’t do this.

FINANCIAL OPTIONS The time to borrow money is before you actually need it. The business owners surveyed in the Small Business Recovery Report say they have or plan to apply for a line of credit. Numerous places offer small business lines of credit. Check out CAPLines, “an umbrella program that helps small businesses meet their short-term

> Churchill

Mortgage appointed Kelly Lee as SVP of production for the Northwest region.

they might have trouble meeting their financial obligations during a recession.

Ultimately, the guide suggests, “they’d rather work with you on your payments than see you go into default.”

YOU’RE NOT ALONE We’re still not certain there will be a recession, but if you prepare now, you’ll be better equipped to handle one if it does occur. It’s also important not to be afraid of this. Being fearful leads many businesses to reduce or stop investing in their companies, which essentially guarantees you won’t grow and can endanger your survival.

It’s critical to surround yourself with people who can help, like a SCORE mentor. If you don’t have a mentor, you can find one at Score.org. n

Rieva Lesonsky is president and CEO of GrowBiz Media, a custom content and media company focusing on small business and entrepreneurship, and the blog SmallBusinessCurrents.com.

> Geneva

Financial named Brittany Van Brunt head of its new Seattle, Washington, office.

> Travis

Morrow has been appointed president of 7 Mortgage in Knoxville, Tenn.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | AUGUST 2022 |

15

BUILD-A-BROKER: HANDS ON PRACTICAL ADVICE BUILD-A-BROKER

The Future Of The Cash-Out Refinance Market Education needed for clients on benefits of HELOCs

BY DENNY CEIZYK, CONTRIBUTOR, NATIONAL MORTGAGE PROFESSIONAL

H

igher rates threaten to slam the brakes on what was a booming market for cash-out refinances, a popular way to tap into home equity as property values rise. Mortgage industry experts expect the refinance market to continue to slow down, with more people turning to other types of loans to meet their financial needs.

Those higher rates have begun to reverse a major refinancing boom.

For two years, Denny Ceizyk two major trends had shaped the mortgage market: rock-bottom interest rates and booming home values. Over the course of 2020, the average rate on a 30-year fixed-rate mortgage hit record lows again and again — driving millions of Americans to refinance their mortgages and save money on their monthly payments.

Those rates stayed low throughout 2021, as well, and mortgage refinancing continued to be popular.

At the same time, home values soared across the nation with extremely few

houses on the market for sale. In the first quarter of 2022, the median sales price of a single-family home in the U.S. was up more than 16% from the same period the year before, according to the National Association of Realtors (NAR).

Those two trends combined to make last year a particularly busy year for

nearly 70% from a year ago, according to data from Fannie Mae. “Virtually all types of refinancing, including cash-out, have become less popular as interest rates have risen,” says Jacob Channel, senior economic analyst at LendingTree. “Despite the fact that Americans are sitting on record

“It’s likely that equity will continue to grow through the rest of 2022, although home price increases should moderate as the year goes on.”

– Rick Sharga, EVP, ATTOM cash-out refinances. People looking to tap their home equity had plenty to borrow, and low interest rates meant they could save money, to boot. In fact, with $248 billion in equity taken out of U.S. homes, 2021 represented the highest volume in 15 years, according to data from Freddie Mac. More than 40% of all refinances involved taking cash-out, and the average amount taken out exceeded $60,000.

With interest rates spiking, the mortgage market is changing rapidly.

Refinances have plummeted, down

amounts of home equity that would otherwise make cash-out refinancing more appealing, today’s high rates have dampened people’s appetite for refinancing, cash-out or otherwise.”

MORE MAY TURN TO HOME EQUITY LOANS Though interest rates are higher, home equity remains high and homeowners are likely to still want to access this equity to meet their expenses. Through the first quarter

PEOPLE ON THE MOVE //

> Agents

National Title Insurance Co. promoted Candi Slobodnik to central states regional manager.

16

> Waterstone Mortgage

hired father and son Patrick and Jason Durkin to run its new Morris, Illinois, branch.

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | AUGUST 2022

> Wells Fargo

announced that Kleber Santos has been appointed the company’s CEO of consumer lending.

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of 2022, overall home equity in the U.S. increased more than $3.8 trillion from the year before, a rise of 32.2%, according to data from CoreLogic. That amounts to an average of $64,000 in additional equity for each homeowner — new wealth ready to be tapped.

Rather than replace their primary mortgage with a new, higher-rate one to access this cash, more families may choose a home equity line of credit (HELOC) as an alternative to a cashout refinance.

HELOCs generally have adjustable rates, meaning they can change over time. Adjustable rates often begin lower than the fixed interest rate at that time, making them a more attractive option with today’s higher rates. If people expect interest rates to fall again in the future, a variable rate HELOC could also be a good option.

Already, homeowners appear to be moving in that direction. Beginning in April, the total volume of home equity loans issued by U.S. commercial banks

began to rise after years of a slow, steady decline, according to data from the Federal Reserve. Between May and June, home equity line balances grew by more than $2 billion, reaching $249 billion. The Federal Reserve also noted in late May that lenders are reporting more interest in HELOCs. A possible recession could change the mortgage industry yet again.

Economists have warned that a recession could be on the horizon, which could shift the mortgage industry once again. A recession may slow the rise of home values, limiting home equity and reducing the number of cash-out refinances.

“Furthermore,” adds Channel, “lenders will probably be less willing to issue home equity loans if the economy enters a recession, as they’ll want to avoid taking on extra risk.”

Even without a recession, inflation and other economic forces could have the same effect.

“It’s likely that equity will continue

to grow through the rest of 2022, although home price increases should moderate as the year goes on,” says Rick Sharga, executive vice president of market intelligence for mortgage data provider ATTOM, in a statement.

“Rising interest rates, the highest inflation in 40 years, and the ongoing supply chain disruptions due to the war in Ukraine are likely to weaken demand and slow down home price appreciation.”

Loan officers should work with consumers to consider if cashout refinance is the right option. Those who recently refinanced may not be good candidates.

They may best be pointed to a home equity line of credit.

Also, loan officers should be prepared to run the numbers to discuss the pros and cons of a cash-out refinance versus a home equity line of credit. They should consider the longterm interest costs of a new mortgage versus a credit line to decide what the best option is for their clients.

Loan officers should also be prepared to tell their clients when tapping home equity is not the best choice and suggest alternatives such as personal loans. Despite the higher interest rates, personal loans may provide needed funds for homeowners that do not have enough equity to benefit from a cash-out refinance, HELOC or home equity loan. n

Denny Ceizyk , a senior writer with LendingTree, has covered the mortgage industry since 2007.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | AUGUST 2022 |

17

BUILD-A-BROKER: HANDS ON PRACTICAL ADVICE

YOUR FIRST MILLION DOLLARS

The World Needs More Top Guns Tom Cruise blockbuster has important lessons for business and life

BY HARVEY MACKAY, SPECIAL TO NATIONAL MORTGAGE PROFESSIONAL

I

was among the millions of people who flocked to movie theaters recently to see “Top Gun: Maverick.” It’s one of the best movies I’ve seen in a few years.

My friend Lt. Col. Rob “Waldo” Waldman is an American author, motivational speaker, leadership consultant and founder of The Wingman Foundation. He is a decorated fighter pilot and retired Air Harvey Mackay Force officer and combat veteran, having flown 65 combat missions.

He loved the movie because “it demonstrates how important it is for us to coach, mentor and lead our youth through challenge and fear.”

“Top Gun: Maverick” is loaded with business and life lessons. This movie speaks volumes about values: values that lift, inspire and encourage, and say I have your back no matter what.

Among the other core values that I picked up in the movie: Trust — The most important word in business is trust. It takes years to build up trust, but only seconds to destroy it. Trust is central to doing business with anyone. I can only imagine the level of trust that these pilots, flying at dizzying speeds and performing mind-bending maneuvers, must have in each other. Lack of trust could mean a life-or-death situation.

Commitment — No one gets in the cockpit of one of these jets without total commitment. When you’re committed to something, you accept no excuses, only results. Commitment is a prerequisite to success. Commitment is the state of being bound — emotionally, intellectually or both — to a course of action.

18

This movie speaks volumes about values: values that lift, inspire and encourage, and say I have your back no matter what.

Commitment starts with a choice and is sustained by dedication and perseverance.

Courage — It’s easy to be ordinary.

Courage is what sets you apart from the crowd. Courage is regarded as one of the major human virtues. Courage is bravery, valor, standing up to danger, guts and nerve all rolled into one. I’m not a soldier, a police officer, a doctor nor a relief worker. I’m a businessman.

So what does courage have to do with running a business?

Plenty. I admit that most folks’ daily

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | AUGUST 2022

lives are not filled with such dramatic challenges. We all face situations that require us to reach down deep within ourselves to do what is right and brave and occasionally difficult. Courage can involve making decisions that are unpopular or time-consuming or even expensive.

Camaraderie/Friendship — I’ve heard this quote many times, including from my good friend Muhammad Ali: “Friendship is the hardest thing in the world to explain. It’s not something you

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learn in school. But if you haven’t learned the meaning of friendship, you really haven’t learned anything.”

Pride — Not the selfserving, obnoxious kind of pride. No, this level of pride means always doing your best so that you can be satisfied that you gave it your all. Pride to me is being selfconfident, but not egotistical.

Could you land on the deck of a moving ship? I’d take a great deal of pride in accomplishing what they do.

Adversity — I have never met a successful person who hasn’t had to overcome a little — or a lot — of adversity.

The impact and ultimate result depend on what you do with the difficulties that come your way. The adversities I’ve experienced have made me stronger, more fearless, and ultimately, more successful.

Perfection — Practice makes perfect — not true. You have to add one word. Perfect practice makes perfect. It doesn’t matter whether you are practicing a presentation or a golf swing or flying a jet, you want to improve your performance, not repeating practice mistakes.

Passion — Passion is at the top of the list of the skills you need to excel in any profession. If you don’t have a deepdown, intense, burning desire for what you are doing, there’s no way you’ll be able to work the long, hard hours it takes to become successful. However, if you are not very good at what you are passionate about, it won’t matter.

Encouragement — Growing up I studied people like Dale Carnegie, who said: “Tell a child, a husband or an employee that he is stupid or dumb at a certain thing, that he has no gift for it, and that he is doing it all wrong, and you have destroyed almost every incentive to try to improve. But use the opposite technique; be liberal with encouragement … let the other person know that you have faith in his ability to do it … and he will practice until the dawn comes in at the window in order to excel.” Encouragement unleashes potential.

Mackay’s Moral: As Waldo Waldman says, “There is a time and a place for us to be a “Top Gun.” n

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Visit www.acralending.com or call (888) 800-7661 to learn more about Acra Lending’s business purpose program AUGUST 2022 |

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BUILD-A-BROKER: HANDS ON PRACTICAL ADVICE

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MARY KAY SCULLY

BENCHMARKS & BEST PRACTICES

Back to School: Building Wealth Through Homeownership

A high loan-to-value loan still may be beneficial for some borrowers

BY MARY KAY SCULLY, CONTRIBUTING WRITER, NATIONAL MORTGAGE PROFESSIONAL

S

ummer is coming to an end and soon we’re heading back to school. Once we’re all done mourning the loss of our vacations and slow, sunny days, it’s time to brush up on something many have lost sight of over the past several months. Despite an increase in both rates and home prices, homeownership is still the biggest opportunity to build wealth — for anyone.

Let’s get back in the classroom, go through our favorite subjects, and explore how you can help your borrowers begin building wealth, despite today’s market challenges.

MATH: HOME PRICES You don’t need a calculator to see that home prices are high. According to The Hill, home prices are up more than 30% from 2020 and almost 16% in the last year alone. The median home price has now reached $428,700 — a significant jump from the $329,000 we saw just two years ago. You don’t have

to be a mathematician to see home prices have made a huge jump over a relatively short amount of time.

It’s easy to think that borrowers should wait for prices to go down, but, while the price surge may slow, prices

2021 Q2 accumulated housing wealth of $349,258, of which 73% is due to price appreciation.”

The report goes on to show how much the average home earns in equity over different periods of time.

Despite an increase in both rates and home prices, homeownership is still the biggest opportunity to build wealth — for anyone. likely won’t return to those low, prepandemic levels that everyone is hoping for. Worst case scenario, they could potentially continue to get higher.

HISTORY: WEALTH BUILDING OVER TIME Looking back at how families have historically built wealth, homeownership is arguably the best investment tool one could use. Any good historian knows that important lessons can be learned from our past, so let’s look back at how homes have built equity.

A report from the National Association of Realtors demonstrates just how much homeowners are actually making over time, through building equity. The report notes, “Homeowners who purchased a typical single-family existinghome 30 years ago at the median sales price of $103,333 with a 10% down payment loan and who sold the property at the median sales price of $357,700 in

20

In just 5 years, a home can earn well over $100,000 in equity, this amount nearly doubles over a 20-year period and reaches nearly $350,000 in equity over a 30-year period. While most buyers may think that building equity takes decades and decades, homes can actually help build wealth in a relatively short amount of time.

With this in mind, a high loanto-value (LTV) loan still may be beneficial for some borrowers, as it could take years to save for their down payment, when in reality, they could potentially be building that — and probably more — in equity. It is so important to know when it makes sense to wait and when it makes sense to get started with building wealth. And, of course, I’m a big fan of strategically using mortgage insurance!

Additionally, the U.S. Census Bureau found that homeowners’ median wealth was a staggering 89 times higher than that of renters.

The two biggest factors in the wealth gap were home equity and retirement

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | AUGUST 2022

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accounts. 63% percent of the net wealth of 80% of Americans is in their primary home, according to home.com.

ART: MATCHING BORROWERS WITH THE BEST OPTIONS The fact of the matter is, borrowers have plenty of options for dealing with affordability issues, and they are

must work with different products and programs to create a masterpiece for each unique borrower.

When creating that masterpiece, there are some mediums that you should consider.

Agency Loans: Both Fannie Mae and Freddie Mac offer low down payment options through HomeReady and Home

There’s an art to connecting your borrowers with the product that best fits their unique needs. more important now than they’ve ever been. There’s an art to connecting your borrowers with the product that best fits their unique needs. Lenders must know the options available and which borrowers are most suitable so they can guide them through this challenging market. In the same way artists work with different mediums like paints, pencils, or pastels, lenders

Possible, respectively.

Local Housing Finance Agencies (HFAs): Check with your secondary market departments as there may be state, county, or city for opportunities with an HFA. Local HFAs will vary, but many offer assistance with down payments or closing costs.

U.S. Department of Agriculture (USDA): Depending on where your

borrower is looking to buy, the USDA also offers homebuyer assistance in rural areas.

Federal Housing Administration (FHA) and Veterans Administration (VA): Of course, the FHA and VA also offer affordable options to help eligible homebuyers.

HIT THE BOOKS So, it’s time to get back to school and brush up on the many options you can offer to help your borrowers start building wealth. Once you’ve studied up, think of yourself as a tutor and share that knowledge with your borrowers so they are educated and empowered to build a better financial future. n

Mary Kay Scully is the Director of Customer Education at Enact, leading the development of the company’s customer education curriculum. The statements in this article are solely the opinions of Mary Kay Scully and do not necessarily reflect the views of Enact or its management.

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | AUGUST 2022 |

21

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| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | AUGUST 2022

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| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | AUGUST 2022

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| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | AUGUST 2022

DATABANK

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | AUGUST 2022 |

35

You won’t get anywhere if you’re not doing Non-QM.

What Do We Do

?

Now

A loan officer’s guide to surviving the rest of 2022

BY KATIE JENSEN, STAFF WRITER, NATIONAL MORTGAGE PROFESSIONAL

T

he past two years have been an anomaly for the mortgage industry, and loan officers that are new to the industry have discovered just what that means. Loans are no longer going to write themselves.

The COVID-19 pandemic pushed The Federal Reserve to slash interest rates to help stimulate the economy, triggering a massive refinance boom.

The pandemic also triggered the proliferation of remote work, which

36

motivated people to move wherever they wish — more affordable cities and suburban areas for the most part.

Demand for home purchases and refinances skyrocketed. As prices climbed, so did the number of loan originators (and the money lining their pockets).

But, the boom quickly came to a close as the Mortgage Bankers Association (MBA) forecasts volume in 2022 to drop as much as 35.5% from last year, which Marina B. Walsh, MBA vice president of industry analysis calls

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | AUGUST 2022

“quite substantial compared to most years.” The MBA’s database on loan originations dates back to the 1990s.

AHEAD FOR THE ROOKIES Industry veterans are used to the up and down cycle of business, so they can probably stomach a steep drop in originations this year, but what about all 18,500 new loan originators that were recruited in the past two years? Active state MLO licenses increased by 21% to 688,327 by the end of 2020 — the highest capacity the industry has seen

ARMs are the next best thing.

Diversify your products if you want to survive in this biz!

mortgage lender offered its remaining employees in the United States the option of taking a voluntary severance package.

Jeff Tufford, branch manager and loan officer at Epic Mortgage Group, said it’s likely a record number of people will leave the industry in 2022, whether through layoffs or by their own volition. “(In 2006) many originators were only paid if they closed loans whereas there have been some changes in employment guidelines that mean originators are supposed to get paid at least minimum wage even if they’re producing no loans,” Tufford said.

“With that being the case, there will likely be a lot of salespeople cut.

Additionally, there were so many companies hiring operations staff, like processors and underwriters, in record numbers that there surely will be a lot of them laid off as well. So as an industry, we may see layoffs like nothing we have seen in a while.”

Jason Sharon, CEO of Home Loans Inc., said he will be happy to see “reficentric” loan officers leave the industry.

“I think the market will drop substantially and, hopefully, the weaker

market is not as easy as it seems.

Lenders and loan officers making this transition will have to bring in new clients, focusing more on homebuyers rather than homeowners.

Refinances are typically referred to as low-hanging fruit in the industry; they don’t need to be closed quickly because the client is already a homeowner, there are no contractual closing dates, and less people are involved in the transaction.

Purchases, on the other hand, are much more complex. If a loan originator says they can finance a borrower’s purchase, and that borrower has already moved out of their apartment, but somewhere down the line the loan gets denied, it can certainly have negative repercussions on the borrower — including the loss of a lot of money.

Without being careful, loan officers can put their clients in a serious pickle and potentially lose business.

However, building a purchasefocused business is necessary for most loan officers.

“If you grind out networking to build a purchase-focused business, nothing

“ … a massive expansion draws in more people who are greedy. They overcharge borrowers and give them terrible rates, all while promising them they’re getting the best deal possible.”

Jason Sharon, CEO of Home Loans Inc. since early 2006 — with the average MLO holding 3.75 licenses, according to the MBA. That’s a lot of new originators chasing diminishing volume.

Refinances have plummeted 76% year-over-year as of mid-June due to rates rising, and it’s clear from recent layoffs that the industry can’t support the current capacity of loan originators.

Refinance shops were the first to go with lenders like Better.com laying off a significant chunk of their workforce.

In the past six months, Better.com underwent two rounds of layoffs that eliminated nearly 4,000 jobs, but it doesn’t end there. In April, the online

of them leave,” he said. “That way we can have better quality originators.

A similar thing happened in 2007 — a massive expansion draws in more people who are greedy. They overcharge borrowers and give them terrible rates, all while promising them they’re getting the best deal possible. That’s what a lot of inexperienced loan officers do.”

TRANSITIONING FROM REFI TO PURCHASE Recently, Better.com transitioned into purchase loans as well as refinance loans — to fight declining revenue. But shifting into the purchase

can take that away from you,” Dustin Owen, vice president of eastern division sales at Waterstone Mortgage and host of the Loan Officer Podcast, said. “You can make permanent, career-long connections with people, which gives you a much more sustainable business.”

Refinances are more like a commodity, because borrowers are looking for the lowest rate they can get. They care less about how long it takes to complete and don’t have to worry about contractual closing dates.

Loan officers rely on the lender’s refinance rates to bring in clients.

CONTINUED ON PAGE 38

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | AUGUST 2022 |

37

WHAT DO WE DO? CONTINUED FROM PAGE 37

However, purchase-focused loan officers do not have to rely on their lender as much. Instead, their client relies on the loan officer to meet contractual deadlines and communicate with third parties to complete the closing. Loan officers mainly depend on their referral sources to bring in business, and if they get laid off or leave the company they work for, they can bring those referral sources with them.

“He or she who controls the lead, controls the money,” Owen said.

Getting referral sources also happens to be the hardest part of transitioning into the purchase market or into any new product — you must bring new clients through the door. Owen said new loan officers should expect this process to take at least two years. For those who have spent all their time doing refinances throughout the pandemicdriven housing boom instead of building relationships with realtors and builders, will have a long way to go before they get their ideal amount of purchase leads.

COMMENCE NEW PRACTICES So, where should you start?

First, Owen says, a loan officer needs to figure out how they are going to

38

create the number of leads they need to make the commission they want.

For example, if a loan officer closes four loans per month with an average loan size of $250,000 — equating to $1 million in volume per month — and a comp plan of 125 basis points, they’ll be making roughly $150,000 per year.

The math is simple: more leads equals more money in your pocket. With a specific goal in mind, loan officers can now get started networking. There are plenty of strategies to grow your network, but Owen’s strategy can put you on the fast track to getting 15 referral sources within 12 weeks.

“You start by contacting pretty much anyone that you would invite to your wedding — friends, family, coworkers, acquaintances — and ask them who their Realtor or builder was. All you need is a name, number, and email address,” Owen said. “It’s not just builders and Realtors you can reach out to, though.

Get in contact with financial advisors, CPAs, divorce attorneys, or HR reps that work for big companies. Homeowners are likely to stick with employers longer than non-homeowners, so they’re incentivized to want to work with you.”

Making cold calls to Realtors and builders is always an option, but it’s not as effective as setting up an in-person meeting. After all, networking is about building relationships, so sharing a

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | AUGUST 2022

lunch together can work more in your favor than a simple phone call.

Loan officers should aim to make 60 appointments within 12 weeks, whether they be in-person or over the phone. Out of those 60 appointments, 30 of them will not be a good fit for you or your business, Owen explained.

The 30 remaining sources may be a good fit, but 15 of them will not want to work with you. So, most likely, you will be left with 15 connections that will actually refer you to people.

“Those 15 people will be the starting point to grow your business,” Owen said.

“As you can see, this is why it takes two years just to build up your network.”

Once purchase referrals start coming in, it’s likely that loan officers will only be able to capture 20% of them. For beginners, that figure might be closer to 15%, and for more experienced loan officers the figure could be closer to 25%.

TO DIVERSIFY … OR NOT As refinances become last year’s news, more lenders and loan officers are looking to diversify their products and the way they market their services.

In the first quarter of 2022, more lenders began to offer Non-QM loans and long-time Non-QM lenders were predicting their profits to shoot way CONTINUED ON PAGE 40

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WHAT DO WE DO? CONTINUED FROM PAGE 38

up. In January, an S&P Global Ratings report stated that Non-QM lending will come in at $40 billion this year. Angel Oak Mortgage Solutions’ Executive Vice President Thomas Hutchens was much more optimistic, stating the Non-QM market will grow to $100 billion — or about 4% of the overall mortgage loan volume predicted for 2022.

Champions Funding LLC began offering Non-QM loans this year and did $20 million in loans during its first month, according to chief operations officer Natalie Verrette. The lender’s objective is to close $1 billion in NonQM loans by the end of 2022.

Throughout most of the pandemic, the Non-QM market all but

CoreLogic. Those borrowers encompass younger Millennials (81%), older Millennials (48%), and Gen Xers (22%).

Additionally, adjustable-rate mortgages (ARM) have become a more attractive option for borrowers looking for low rates. A Redfin report shows the typical homebuyer could save an estimated $15,582 over five years, or roughly $260 per month, by taking out an adjustable-rate mortgage.

ARMs have been surging in popularity as mortgage rates continue to climb.

They made up 8.2% of all mortgage applications in the first week of June.

That’s up significantly from 3.1% at the start of the year, nearing 2008 levels when a lack of regulation of ARMs helped contribute to the housing crash.

“He or she who controls the lead, controls the money.”

– Dustin Owen, vice president of eastern division sales, Waterstone Mortgage and host, the Loan Officer Podcast disappeared. Non-QM lenders were afraid, like most of us were, when the pandemic initially broke out. A number of wholesale lenders suspended Non-QM funding or tightened their standards on acceptable FICO scores.

They essentially abandoned their loan officers who could no longer work with non-conventional borrowers.

The Non-QM share of total mortgage counts reached its lowest level in 2020, at 2% of the market. In 2022, market share almost doubled, representing about 4% of the first mortgage market.

It became a highly desired product since it meets the needs of homebuyers not able to obtain financing through the GSE or government channels.

Self-employed borrowers, borrowers with substantial assets but limited income, jumbo loan borrowers, and investors not qualifying for the GSE and government loans, may benefit from Non-QM loan options.

FOCUS ON THE RIGHT MARKETS First-time homebuyers are what loan officers need to pay attention to, since they make up 34% of all U.S. homebuyers — an increase from last year’s 31%, according to a report from

40

In the early 2000s, scores of borrowers were drawn to ARM loans due to their initial “teaser rates” and option for a 0% down payment. But, that became problematic when rates were reset higher and many buyers could no longer afford their monthly mortgage payments.

That’s precisely the danger behind ARMs and interest-only loans — they could get borrowers in trouble because they become more expensive over time.

Nowadays, there is a cap on just how much higher the rate can go to prevent huge swings seen before the housing bubble.

Prior to rates moving higher, the ARM share of loans was incredibly low.

The ARM share declined during the pandemic and reached a 10-year low of 4% of originations in January 2021, according to CoreLogic. As of March 2022, the ARM share accounted for 13% of the dollar volume of conventional single-family mortgage originations, a threefold increase since January 2021.

“Typically more people move into ARM loans in higher rate environments,” Frank Nothaft, chief economist of Corelogic, said in March.

“In the past two years, fixed mortgage

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | AUGUST 2022

rates were low so it made sense to stick with conventional lending. Now that the market is shifting into higher rates, these low ARM rates seem attractive. Typically, this product is best for buyers who plan on living in a home temporarily, and moving out before the rate adjusts.” [Editor’s note: Nothaft has passed away since this interview was conducted.]

“Loan officers and brokers need a high degree of knowledge to sell ARM loans,” said Sky Equity Chief Development Officer John Tedesco.

“ARM loans make sense if the borrower plans on moving out of the home within the next few years.”

Tedesco is also the founding member of National Private Lending Association and a member of American Association of Private Lending. He implores loan officers to consider private lending due to an increased demand in investment properties and people wanting to build their assets.

“About 70% of single family rentals are owned by mom and pop investors.

There’s burgeoning demand in this market — they’re buying more and many of them go through brokers to get their loan,” Tedesco said. “Moreover, rental flipping is a repeat business; once they’re done flipping one property, they move onto the next. Brokers get to reap the benefits from their repeat business.”

A CONVENTIONAL APPROACH Although the non-QM market will likely grow this year and demand for these other products should increase as well, they are not necessary if you’re just starting your purchase business.

Conventional loans currently comprise 82% of the mortgage market in the U.S. and in combination with FHA loans and Jumbo loans, those comprise 95% of the mortgage market.

“Conventional loans, FHA loans, and Jumbo loans — those are the products you want to stick to if you’re a new loan officer. Conventional loans will always dominate the market, no matter what the conditions are. ARM and Non-QM typically go up in a high rate environment, but it’s not a necessity to diversify,” Owen said. “These niches boom and bust all the time. If you’re getting into the purchase business you need basic loans, not anything specialized.” n

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| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | AUGUST 2022

Mike Fawaz builds brokers with an open heart

BY DOUG PAGE, STAFF WRITER, NATIONAL MORTGAGE PROFESSIONAL MAGAZINE

A

weaker man could be an insufferable “tough guy,” maybe a boastful pugnacious braggart.

But Rocket Pro TPO’s ambassador to brokers isn’t a weak man.

Growing up in war-torn Liberia, there were many days Mike Fawaz was forced to keep silent in his basement. Above, soldiers and enemy fighters patrolled the war-torn streets in a civil war that lasted from 1989 to 1997.

Food was scarce. For some stretches of time, it would be little more than bite-size moldy doughnuts, called African Kala, made by his mother and aunt.

During lulls in the fighting,

things you shouldn’t see growing up,” said Samir Dedhia, CEO of Holmdel, N.J.-based Lemon Brew Lending. “It made him tougher. You can become a hard ass as a result. He’s not. He’s a soft dude.

Seeing all those things — plus homes being broken into by soldiers — made him compassionate.”

Fawaz joined Rocket in May 2011 as one of its mortgage bankers, and he’s been on a meteoric rise ever since, taking on his current position in September 2020, as the senior vice president for sales for Rocket Pro TPO, where he’s charged with leading the mortgage writing initiatives by independent brokers and loan officers.

In interviews with the many who surround Fawaz — Austin Niemiec, Chris Behrns and mortgage brokers — they all describe a man who

“Empathy should be first and competency should be second. You need to be competent at what you do but if you lead with empathy, you’re going to build that relationship and that rapport.”

– Chris Behrns

when he could emerge from the cellar for a limited time, he saw what no child should see: a neighborhood cluttered with mangled bodies and destroyed buildings. On occasion, people died right in front of him.

‘A SOFT DUDE’ Those impressionable experiences — learning what it took just to survive — could have justifiably turned Fawaz, now Rocket Pro TPO senior vice president, into a troubled soul.

“He saw multiple dead bodies in the street and lots of destruction —

treats everyone generously. And Behrns, Rocket Pro TPO divisional vice president, notes, Fawaz does it with empathy, adding its part and parcel of Rocket’s culture.

“Empathy should be first and competency should be second,” Behrns said. “You need to be competent at what you do but if you lead with empathy, you’re going to build that relationship and that rapport.”

As Dedhia sees it, the way Fawaz treats everyone harkens back to those impressionable days in Liberia, when life was fragile.

“I think part of it is his upbringing,” he said.

“Mike truly values everyone he meets. He’s willing to listen when I disagree with him. And he’ll let me know his opinion, too. He does it all very respectfully.”

CONTINUED ON PAGE 44

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MIKE FAWAZ CONTINUED FROM PAGE 43

DEFT DIPLOMAT Fawaz isn’t riding herd over the country’s hundreds of independent mortgage brokers. His approach is more akin to that of a deft diplomat.

He travels the country, meeting with many of them in their offices, making friends and delivering Rocket’s message to this audience that’s critical for the company’s success.

In the 17 months since United Wholesale Mortgage issued an edict that brokers couldn’t work with Rocket or Fairway if they wanted UWM to continue to fund their loans, Fawaz’s role has taken on an added importance. He’s often the first high-ranking Rocket executive that mortgage originators meet. He’s more than just another suit pitching business. To them, he’s the face and, some say, the soul of Rocket.

“I can tell you this. When someone told us to make a choice (about wholesalers last year) it was the easiest choice I could make,” said Christian Plocica, the chief operating officer of Orlando, Fla.-based VIP Mortgage Group. “The other wholesalers don’t have the people and the desire and the dreams to help people like Rocket does.”

And that had to do with Fawaz. What makes this man so special? What sort of competitive edge does he provide Rocket?

“He just makes you feel good, like you’re doing business with a good company,” said Raj Kandola, chief financial officer of Murrieta, Calif.-based Omni Fund. “He comes across completely sincere.”

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| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | AUGUST 2022

This sincerity surely has its roots in his family life. He waited decades for his parents to follow him to America. Now that his mother and father are here, surviving the country’s second civil war that lasted from 1999 to 2003, he shares a roof with them in the home where he lives with his wife and two children.

“We had to fight tooth and nail to get their Green Card,” Fawaz said. “My mom came here three years ago, and my dad got here about a year or two before her.”

“I don’t want them to live in a house by themselves,” he said. “I want to give them the best life they can ever have. I owe it to them.

They’ve been through hell.”

One way Fawaz provides that best life is by running an errand for his father every morning before going to work.

“Around 5 a.m., he goes to a nearby Lebanese bakery and buys his dad coffee and a pastry that he likes. He makes sure he’s eating before going to the office,” Dedhia said.

NOT JUST A BUZZWORD Family, family, family. It’s a virtue — not an empty buzzword in this instance — that constantly comes through when talking with Fawaz or about him.

Observes his boss, Rocket Executive Vice President Austin Neimiec: “When you talk with Mike, he uses the word family all the time. He calls our partners (mortgage brokers) family, and he really views them as family.”

One partner, in particular, was quite vociferous CONTINUED ON PAGE 46

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MIKE FAWAZ CONTINUED FROM PAGE 44

about what Fawaz means to him.

“I never had a father. My mom was a single mom and she’s deceased. He (Fawaz) is always there and willing to listen and offer advice,” said VIP Mortgage’s Plocica. “He makes you feel like you’re the most important person in the room, even if there are 50 or 100 people in the room. He’s always saying, ‘You’re my brother. How can I help you?’”

Adds Lemon Brew Lending CEO Samir Dedhia: “We’re all family as he sees it. We’re all in it together.

Regardless of whether you’re blood-related or not. We’re ike any immigrant, Mike’s many watching out for experiences in his native land influence each other.” his habits in his adopted country.

It was extended “I hate Timbits,” he said during family that an interview with National Mortgage brought Fawaz Professional, referencing the tiny, bite-size to the U.S. He doughnuts sold at Tim Horton’s restaurants landed in Detroit in the Detroit area. in March 1998 His sour feelings for the pastry stem back in the midst of a to Liberia. snowstorm. He “We only had one bag of flour,” Fawaz was an 18-yearsaid. “It was filled with mold, but my old with plans mom and aunt would sift through it with to pursue a their hands to clean it up as much as they bachelor’s degree could. They would fry up these little balls of at the University doughnuts. We call them African Kala. I ate of Michigan’s those for 20 days straight during the war, Dearborn campus. and it was the only thing I ate.”

What was it like Life in Liberia during the first civil war that to enter a country lasted from 1987 to 1999 also turned him off so different from to tap water. “He’s big into bottled water,” the one he knew? said Rocket Pro TPO Divisional Vice President Hallmarks Chris Behrns. “He won’t drink tap water of his Liberian because of his experiences over there.” youth included His boss, Executive Vice President Austin showering in and Niemiec, sees another trait that’s a result of brushing his teeth Fawaz being an immigrant. with salt water.

“Gratitude. He’s one of the most The “shower” was gratefully unsatisfied people I’ve ever met. a small bucket, He has this perspective,” he said. “He has pinned to a wall. such a good perspective on how the world “It wasn’t even works and how blessed he is. a bathroom,” “He’s always grateful for the opportunity Fawaz said, while he has to work at Rocket, to talk to brokers describing his and to lead people,” he added. n home in the west African country.

“Someone would fill the bucket with water from the [Atlantic Ocean] because we didn’t have running water. I didn’t even know how toothpaste tasted until I moved here.”

“The first time I actually knew what hot water was, like to take a bath or a shower, was in the

Lasting Influences From Liberia

L

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| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | AUGUST 2022

United States. That’s the first time I knew that this even existed,” Fawaz said.

Other observations of his adopted country included how the buildings looked, how the streets were organized — and that the lights worked.

“It was just an experience, man,” said Fawaz.

“And I knew, right then, that I fell so in love with it.”

EXCRUCIATING SCHEDULE It’s a country Fawaz frequently crisscrosses. As he sees it, the travel is worthwhile — better than a Zoom call. Just like he keeps his parents close, he keeps in close contact with his clients.

He lives an excruciating travel schedule. He’s on the road about 90% of the year, visiting mortgage originators. Between April 2021 and April 2022, by Rocket’s count, he met nearly 250 in their offices, and that doesn’t include the many he met at conferences, says Rocket spokesman John Perich.

As COVID-19 vaccinations became available, making it possible to travel again, Niemiec recalled, Fawaz came into his office and said, “I gotta get out there and see our partners,” adding it was Fawaz’s idea — not his — that he travels as much as he does today.

Life on the road with Fawaz is no vacation, says Behrns, who’s ridden shotgun with him during his many calls on brokers.

“We spend about an hour with each partner,” he said. “We usually don’t eat lunch. At the end of the day, we recap what happened. We’re game planning by 7:15 the following morning and after eating breakfast, we’re back on the road by 8 or 8:30 a.m. and our first meeting is usually by 9.

We’re constantly working.”

Both Niemiec and Behrns says Fawaz keeps the same schedule on the road that he does in the office.

“He’s up at 3:30 a.m. running meetings from his hotel room in California,” Niemiec said. “If you travel with him, it’s nonstop. He loves it, by the way. He genuinely loves meeting, talking and

breaking bread with partners. It’s not just a job to him. It’s really a passion of his.”

The inspiration for these hours came from his dad.

“He always said if you want to be successful, don’t let the sun beat you in the morning,” Fawaz said. “It’s always been with me.”

And it appears, all of the travel is having an impact.

“I’ve had countless partners (mortgage originators) reach out and say, hey, I’ve been reluctant to sign up with you over the years, or reluctant to leave the lender I’m working with, but, my goodness, after meeting Mike, he embodies your culture, who you are, and, my goodness, the passion he has is the reason I came over to your platform,” said Niemiec.

“A lot of them say the same things: He treated me like I was family. He was very vulnerable. He was genuine. And that’s who he is, and partners feel it,” he added.

Rocket, of course, is a sizable company with lots of talented executives but Fawaz had something unique, something that made him the perfect candidate for his current role.

“There are two reasons we chose Mike,” Neimiec said. “One is something you can’t coach, you can’t teach, and you can’t train – it’s heart. He has the biggest heart out of anyone I’ve ever worked with.

There are a lot of ways you can define heart. It’s his genuine care level for brokers and team members.

He genuinely wants everybody to succeed and takes it personally to make sure they do.

“You can also define heart as work ethic.

There’s no one I’ve ever met that works as hard as Mike Fawaz,” he added.

GLAD TO SEE HIM What does Fawaz think about his job?

“2021 was a challenging year from just a COVID standpoint. It was hard to get in front of people.

But I wanted to make sure I was on the road every

single day, having conversations and really showing brokers who we are,” he said. “It’s a much better conversation when you can have it in person.”

“Look, there are lots of people who can have their opinions of who we (Rocket) are, but when you get in front of them, you at least get an opportunity to speak about who you are,” Fawaz said. “And I’ll tell you — not to brag — but the reception from the brokers has been incredible.”

And what message does he convey during those meetings?

“I talk about the ‘Isms’ (Rocket philosophies) that we believe, who we are, our mission from a Rocket Pro TPO channel and what we want to accomplish,” he said. “When I’m speaking with brokers, I’ll give them an hour of my time, even two hours, whatever they need, because I want to get to know them.”

This isn’t just the typical sales call — a conversation that’s all business, highlighted by the features and benefits of what Rocket offers mortgage brokers. There’s some intimacy, too.

“I want to talk about their business and family,” he said. “I bring my story and my family into every conversation. People know me on a personal level.”

“I never had a father. My mom was a single mom and she’s deceased.

He is always there and willing to listen and offer advice.”

– Christian Plocica, VIP Mortgage

In fact, Fawaz is so determined to know the broker community, he no longer carries business cards.

“I want to exchange phone numbers right away,” he said, describing the opening moments of those meetings with mortgage brokers. “I give them my cell number, and I want them to text me so I can save their number in my phone.”

“Sometimes,” he added, “my assistant thinks it’s crazy because I get a lot of texts and calls. But guess what? If you want to have an impact at a high level, you have to do these things.”

“Because Rocket is all about partnerships. It’s not about transactions. To us, a broker who does one loan or a broker who does a 1,000 are treated the same,” Fawaz said. “It’s about the service we can offer our brokers.

“It’s how can I work with brokers, knowing that every single one of their LOs have a family that’s dependent on them. It’s all about partnerships. It’s all about relationships. It’s all about how we grow together,” he added. n

NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | AUGUST 2022 |

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NATIONAL MORTGAGE

PROFESSIONAL MAGAZINE | AUGUST 2022 |

53

FACEBOOK THOUGHTS

The Accident That Is Waterboarding

NICK ROBERSON

Nick Roberson

S

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Nick Roberson is a long-time mortgage industry veteran and a board member of the California Association of Mortgage Professionals. He’s a forthcoming and giving guy, who shares his … unique … perspective on work and life on his Facebook account. Here are some of Nick’s FB thoughts this month:

avannah just came home from running an errand for me. Her face, hair, and shirt were soaking wet. I started to ask her why she was all wet, but before I could get a word out, she raised her hand to shush me and said, “Before you ask, I accidentally waterboarded myself. I was at a stoplight and was taking a drink of water right as the light turned green. I stepped on the gas, accidentally hit my paddle shifter, which caused the turbos to kick in. I panicked and squeezed the water bottle and well … waterboarded myself.” I looked at her and asked her if she was okay. She told me she was fine.

Then I walked away laughing uncontrollably. She just yelled at me from the other room, “Dad!!! I can hear you laughing! It’s not that funny, it’s just water!”

I say we just agree to disagree.

••• Did you ever want it and couldn’t have it, got it and didn’t want it, and then threw it away and wish you hadn’t?

••• I was interviewing a possible new assistant today and asked them what they thought about nepotism in a workplace environment.

Candidate: Well, that’s a really good question, Dad. ••• A husband and wife who work for the circus go to an adoption agency looking to adopt a child, but the social workers there raise doubts about their suitability.

So the couple produce photos of their 50-foot motor home, which is clean and well maintained and equipped with a beautiful nursery.

The social workers are satisfied by this but then raise concerns about the kind of education

a child would receive while in the couple’s care.

The husband puts their mind at ease, saying, “We’ve arranged for a full-time tutor who will teach the child all the usual subjects along with French, Mandarin, and computer skills.”

Next though, the social workers express concern about a child being raised in a circus environment.

This time the wife explains, “Our nanny is a certified expert in pediatric care, welfare, and diet.”

The social workers are finally satisfied and ask the couple, “What age child are you hoping to adopt?”

The husband says, “It doesn’t really matter, as long as the kid fits in the cannon.”

••• You know it’s time to clean out the refrigerator, when getting anything out of it is like playing a giant messy game of Jenga!

••• Why did Beethoven get rid of his chickens? All they said was, “Bach, Bach, Bach … .”

••• When someone says, “Stop!” I never know if it’s in the name of love, if it’s Hammertime, or if I need to collaborate and listen. n

| NATIONAL MORTGAGE PROFESSIONAL MAGAZINE | AUGUST 2022

To see more by Nick, just go to www.facebook.com/nickroberson.

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Non-QM Summit™ L A S VEG A S , NV NM LS R E NEWA L C L AS S

Texas Mortgage Roundup™ DA LL A S , TX NM LS R E NEWA L C L AS S

Great Northwest Mortgage Expo™ SE AT TLE , WA NM LS R E NEWA L C L AS S

California Mortgage Expo™ PA SA DE NA , CA NM LS R E NEWA L C L AS S

California Mortgage Expo™ OA K L A ND, CA NM LS R E NEWA L C L AS S

Colorado Mortgage Summit™ DE NVE R, CO NM LS R E NEWA L C L AS S

Texas Mortgage Roundup™ HO USTO N, TX NM LS R E NEWA L C L AS S

OCN Mortgage Holiday Party I RVI NE , CA

Complimentary registration available to NMLS-licensed active LOs and their support staff.

Show producers reserve the right to determine final eligibility. NMLS Renewal class open to expo attendees only, other restrictions apply.

The Leader in Non-QM

Visit AngelOakMS.com | 855.631.9943 ©Angel Oak Mortgage Solutions LLC NMLS #1160240, Corporate office, 980 Hammond Drive, Suite 850, Atlanta, GA, 30328. This communication is sent only by Angel Oak Mortgage Solutions LLC and is not intended to imply that any of our loan products will be offered by or in conjunction with HUD, FHA, VA, the U.S. government or any federal, state or local governmental body. This is a business-tobusiness communication and is intended for licensed mortgage professionals only and is not intended to be distributed to the consumer or the general public. Each application is reviewed independently for approval and not all applicants will qualify for the program. Angel Oak Mortgage Solutions LLC is an Equal Opportunity Lender and does not discriminate against individuals on the basis of race, gender, color, religion, national origin, age, disability, other classifications protected under Fair Housing Act of 1968. MS_A723_1221